On January 1, 2017, the Bonds Payable account has a balance of $690,000. On December 31, 2017, the Bonds Payable account has a balance of $810,000. During 2017, one bond of $10,000 was retired. No discounts or premiums were amortized in 2017. What amount of new bonds were issued in 2017?

Question

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The increase in the Bonds Payable account from $690,000 to $810,000 is $120,000. Since a $10,000 bond was retired, the total amount of new bonds issued must be $130,000 ($120,000 increase + $10,000 retired).

On January 1, 2017, the Bonds Payable Account Has a Balance